Section 1.

Makes technical changes to GS 90-414.1 (title).  Expands the scope of the Statewide Health Information Exchange Act (Act,) Article 29B of GS Chapter 90, set forth in GS 90-414.2 to include the State as an entity involved in the sharing of health information. Adds five new terms to the definitions provisions of the Act and makes technical changes. Defines State-funded health care to mean (1) the NC Medicaid Program, (2) the State Health Plan for Teachers and State Employees, and (3) health care facilities and health care programs administered or operated by the Department of Health and Human Services (DHHS), the Department of Public Safety (DPS), or the Department of Adult Correction (DAC), and their employees, agents, or grantees. Defines state health care funds as monies providers or entities for the provision of health care services to recipients of State-funded health care, including both (i) direct payments from the State to providers and entities and (ii) payments that providers and entities receive from third parties, or the agents of third parties, that are retained by the State for the administration or delivery, or both, of State-funded health care, including prepaid health plans as defined in GS 108D-1 and claims processors as defined in GS 135-48.1.

Removes licensed dentists from those individuals who are required to submit demographic and clinical data to the Health Information Exchange (HIE) network under GS 90-414.4; instead now requires dentists to only submit claims data for State-funded health plans to the HIE Network once daily. Deems a provider as connected to the HIE Network when the covered entity that provides, maintains, controls, directs, or licenses that provider's or entity's data transfer system has met the five requirements, including communicating to the NC HIE Authority (Authority), in writing, the identity of all providers and entities on whose behalf it maintains a data transfer system and providing its organizational national provider identifier (NPI) required under HIPAA.

Removes provisions pertaining to extensions of time and undue hardship exemptions for connection to the HIE Network. Expands the entities required to submit demographic and clinical data to the HIE Network at least twice per day to include each prepaid health plan that is under a capitated contract with DHHS for the delivery of Medicaid services. Now limits the type of Medicaid local management entity/managed care organization (LME/MCO) that is required to submit information to the HIE Network twice daily to those LME/MCO’s that are under a capitated prepaid health plan contract with DHHS. Requires pharmacies to submit claims information for State-funded health plans to the HIE Network once daily. Removes the blanket exemption for substance abuse records protected under 47 CFR § 2 and instead requires disclosure to the HIE Network if the Authority has provided written notice to the participating entity that data protected by 42 C.F.R. § 2 can be disclosed for a specific purpose. Expands the providers that can voluntarily connect to the HIE Network and submit data to include college student health centers and dentists. Clarifies that a covered entity which provides, maintains, controls, directs, or licenses a data transfer system on behalf of providers and entities that are required to connect to, and submit data through, the HIE Network, as well as on behalf of providers and entities that voluntarily  do the same may elect not to submit through the HIE  Network clinical, demographic, or claims data generated by the providers and entities that voluntarily connect to, and submit data through, the HIE Network. Specifies four conditions that apply to any exception granted by the Authority for connecting to and submitting data through the HIE Network, including authorizing a time-limited exception process administered by the Authority for providers and entities to connect to and begin submitting data to the HIE Network, as described. Updates the federal agency information that establishes document exchange and data submission standards. Makes conforming and technical changes.

Permits the Authority, if it participates in the Trusted Exchange Framework and Common Agreement (Agreement), to provide individual access services through the Agreement in GS 90-414.6 (State ownership of NIE Network data). Makes conforming changes. Modifies the Authority’s powers and duties under GS 90-414.7, as follows. Exempts federal agencies that access the HIE Network solely to review patient data for treatment purposes and exchanges made through eHealth Exchange or the Trusted Exchange Framework and Common Agreement from the statute’s requirement that the Authority enter into a HIPAA compliant business arrangement agreement with such an entity, so long as the Authority enters into the agreements that are required to participate in each of these respective national networks. Extends its obligations to facilitate and promote the use of HIE Networks to covered entities to include business associates acting on their behalf. Adds three new duties, including to enforce the Act, provide data related services as allowed under the Act, and adopt rules to implement the appeals process established by GS 90-414.15 (discussed below). Adds another ex officio voting member to the Authority’s Advisory Board established under GS 90-414.8. Makes conforming changes to GS 90-414.9 (participation by covered entities). Expands the types of civil or criminal penalties and civil remedies that may be imposed for violations under GS 90-414.12 to include those applicable under any federal law or regulation (currently, just the HITECH act and regulations). Makes it unlawful for any person or entity to knowingly present or cause to be presented to the Authority a false record in its annual report (discussed below) to avoid full payment of the State health data assessment (described below). Subjects those persons or entities to a fine of at least $5,000 but not more than $10,000 per violation, plus three times the amount of damages sustained by the Authority as a result of that person's or entity's actions. Allows for the Authority to assess daily penalties capped at $50 per day or each day after the required reporting period or deadline that the annual compliance report remains out of compliance with the requirements prescribed by GS 90-414.13.

Enacts GS 90-414.13, requiring each covered entity that provides, maintains, controls, directs, or licenses the data transfer system of a provider or entity subject that provides health care services to beneficiaries of State-funded health care to submit an annual compliance report to the Authority by May 1 each year with the daily civil penalty discussed above starting to accrue after the first of May.  Requires the annual report to cover seven prongs of information including the status of technical connection and data submission to the HIE Network and an attestation to the completeness and validity of the annual report. Exempts a covered entity that provides, maintains, controls, directs, or licenses a data transfer system solely on behalf of a provider or entity that voluntarily connects to the HIE Network pursuant from the annual report requirement. Provides for an abbreviated annual report by State agencies. Allows for the Authority to waive any of the annual report requirements upon request and for good cause if compliance would cause an undue hardship. Requires DHHS’s Division of Health Benefits (DHB) to assist in administering the annual report requirement as it pertains to State Medicaid providers, as determined as necessary by the Authority. Nevertheless requires DHB to annually provide the Authority with a current list of enrolled Medicaid providers, assist with notifying those Medicaid providers about the annual compliance report requirement and reporting deadline, and provide available information requested by the Authority that is necessary for the Authority to audit or verify the completeness and accuracy of an enrolled Medicaid provider's annual compliance report and related materials submitted to the Authority by or on behalf of that provider.

Provides for an annual State health data assessment fee due on May 1 in GS 90-414.14 if a covered entity (1) is not connected to the HIE network or (2) is connected to the HIE Network but is not submitting data through the HIE Network. Provides for a fee schedule to be set by the General Assembly. Establishes the HIE Network Data and Participation Fund (Fund) as a special fund in the Department of Information Technology (DIT) under the management and control of the Authority, consisting of the monies described. Prevents the Authority from using monies in the Fund for any  purpose other than to pay for expenses incurred by the Authority in carrying out its powers and duties as set forth in the Act. Specifies that monies in the Fund are only available for expenditure upon an act of appropriation of the General Assembly and that the Fund is subject to the provisions of the State Budget Act, except that no unexpended surplus of the Fund may revert to the General Fund. Allows for a covered entity to claim an exemption from the assessment fee if any of the five listed conditions apply, including that the covered entity attests in writing that it and the providers and entities on whose behalf it provides, maintains, controls, directs, or licenses a data transfer system received less than $500,000 in State health care funds for providing health care services to beneficiaries of State-funded health care. Authorizes the Authority to revoke a covered entity's exemption from payment of the assessment fee if the covered entity is unresponsive to communications from the Authority or if the covered entity fails to maintain contact with the Authority. Provides for notice and an opportunity to cure.

Provides, in GS 90-414.15, for an appeal of the Authority’s determinations to (1) grant or deny requests for time-limited exceptions and (2) assess penalties under for violations of the Act, as described. Allows the Authority, in GS 90-414.16, to provide data related services to a covered entity participating in the HIE Network or to a business associate of the participating covered entity that is using the service to perform a function for the participating covered entity. Clarifies that GS 90-414.16 should not be construed to require the Authority to provide data related services to covered entities or their business associates and that data disclosed or used in the Authority's provision of these services to any person or entity cannot be used for commercial purposes. Allows the Authority to charge a reasonable fee for its services that cannot exceed its actual cost incurred.

Section 2.

Establishes the deadline for the first annual report described under GS 90-414.13 as May 1, 2028.

Section 3.

Establishes initial State health data assessment fee schedules for annual compliance report periods beginning in 2028, 2029, and 2030 based on the amount of State Health Care Funds received, ranging from 1.6% of those funds received in 2027-2029 if the entity received over $1 million in the respective time period to no fee if the entity received less than $250,000.

Section 4.

Sets the act’s effective date at December 1, 2025.

Section 1.

Appropriates $309,568,563 from the State Capital and Infrastructure Fund (Fund) to the Department of Administration (DOA) for 2025-26 to be used for advanced planning and construction of a new automated warehouse and associated offices for the North Carolina Alcoholic Beverage Control Commission (ABC). Upon the earlier of project completion or July 1, 2029, directs ABC to repay the total amount of funds appropriated from the Fund for the project in an amount of no less than $20.67 million annually, to be credited to the Fund. Directs that the act should not be deemed to preclude repayment of amounts more than the minimum prescribed annual amount. Effective July 1, 2025.

Section 2.

Establishes a service business permit as a new kind of ABC permit under GS 18B-1001, as follows. Authorizes a service business (an establishment that is primarily engaged in the business of providing services to the general public that require an occupational license issued by the State) to furnish complimentary malt beverages and unfortified wine to customers, in conjunction with the provision of the service, for consumption on the permittee's premises at no extra charge to the customers in the servings and amounts specified, subject to the conditions of GS 18B-603, described below. Authorizes purchase of permitted beverages from a wholesaler.

Specifies in GS 18B-603, that the ABC may only issue service business permits to qualified persons and establishments located within a jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits may be issued, subject to the three following restrictions for a service business permit:

1. If on-premises malt beverage permits, but not on-premises unfortified wine permits, may be issued in the jurisdiction, the service business permittee may furnish only malt beverages to customers. 
2. If on-premises unfortified wine permits, but not on-premises malt beverage permits, may be issued in the jurisdiction, the service business permittee may furnish only unfortified wine to customers. 
3. If on-premises malt beverage permits and on-premises unfortified wine permits may be issued in the jurisdiction, the service business permittee may furnish malt beverages and unfortified wine to customers.

Provides for a $50 service business permit fee in GS 18B-902. Specifies in GS 18B-903 that a service business permit remains valid indefinitely unless it is surrendered, suspended, or revoked. Sets annual registration and inspection fee at $50 per permit. Requires service business permittees to submit a recycling plan along with the original permit application and any renewal. Makes technical and conforming changes to GS 18B-GS-903, GS 18B-300 (pertaining to purchase and consumption of malt beverages and unfortified wine), and GS 18B-1006.1 (additional requirement for certain permittees to recycle beverage containers).

Effective July 1, 2025.

Section 3.

Modifies the packaging requirements for a single serving of unfortified wine that is sold by vehicle delivery under either (1) an on-premises unfortified wine permit, (2) an on-premises fortified wine permit, and (3) a mixed beverages permit in GS 18B-1001 so that the packaging complies with GS 20-138.7 (transporting open container offenses) and is in an unopened manufacturer's original container or is transported in a locked container, in the trunk, or in the area behind the last upright seat in a motor vehicle not equipped with a trunk (currently statute specifies that notwithstanding GS 20-138.7, the only requirement is if container continues to be sealed and is in the passenger area of the vehicle). Makes conforming changes to GS 20-138.7.

Effective October 1, 2025, and applies to offenses committed on or after that date. 

Section 4.

Modifies the county alcoholic beverage elections under GS 18B-600 for mixed beverages so that in addition to the conditions specified, a county may hold such an election if a city in the county operates at least one ABC store. Specifies that if a county does not operate at least one ABC store, a mixed beverages permittee may purchase liquor from an ABC store that is designated as a mixed beverage ABC store operated by any local board operating in the same county as the permittee. Retroactively effective to October 1, 2024.

Section 5.

Makes technical correction to GS 18B-603(d)(4) (concerning brown bagging permits).

Section 6.

Corrects the statutory citation in GS 18B-300.3 so that it refers to GS 18B-1001 (listing kinds of ABC permits) instead of GS 18B-1000 (definitions concerning ABC retail establishments).

Section 7.

Authorizes an ABC permittee business that is not permitted to sell mixed beverages to allow a customer to possess and consume on the business's premises mixed beverages purchased from a mixed beverages permittee in the social district.

Includes whereas clauses.

Part I.

Requires the Department of Health and Human Services (DHHS) to establish and operate a Maternal Mortality Prevention Grant Program (grant program) to award grants to eligible entities to establish or expand programs for the prevention of maternal mortality and severe maternal morbidity among black women. Requires applicants to be community-based organizations offering programs and resources aligned with evidence-based practices for improving maternal health outcomes for black women. Requires DHHS, beginning July 1, 2025, to conduct outreach to encourage eligible applicants to apply and provide application assistance. Awards grants with amounts ranging from $10,000 to $50,000. Sets out criteria to be considered when awarding the grants. Sets out the types of technical assistance DHHS must provide. Requires DHHS to report to the specified NCGA committee and division by October 1, 2026, and October 1, 2027; sets out issues to be addressed in the report.

Appropriates the following from the General Fund to DHHS, Division of Public Health, for each year of the 2025-27 biennium: (1) $93,513 in nonrecurring funds to establish a time limited, full-time Public Health Program Coordinator IV position to provide application assistance and technical assistance to recipients, and prepare the required report and (2) $4, 906,487 in nonrecurring funds to be allocated to the Maternal Mortality Prevention Grant Program. Allows up to 1% of these funds to be used for administrative purposes related to the grant program. Authorizes DHHS to hire one full-time, time-limited Public Health Program Coordinator IV position. Effective July 1, 2025.

Part II.

Enacts new GS 130A-33.62, providing as follows. Requires DHHS, in collaboration with (1) community-based organizations led by black women that serve primarily black birthing people and (2) a historically black college or university or other institution that primarily serves minority populations to create or identify an evidence-based implicit bias training program (training program) for health care professionals involved in perinatal care (the provision of care during pregnancy, labor, delivery, and postpartum and neonatal periods). Sets out 12 minimum components of the training program, including identification of previous or current unconscious biases and misinformation; identification of personal, interpersonal, institutional, structural, and cultural barriers to inclusion; corrective measures to decrease implicit bias at the interpersonal and institutional levels; and information about how to communicate more effectively across identities. Requires all health care professionals to complete the training program, specifying deadlines for completion depending on whether the individual is licensed before or after January 1, 2026. Requires proof of completion for license/registration/accreditation/certification renewal. Defines a health care professional as a licensed physician or other health care provider licensed, registered, accredited, or certified to perform perinatal care and regulated under the authority of a health care professional licensing authority. Encourages DHHS to seek opportunities to make the training program available to all health care professions and to promote its use among four specified types of providers and programs. Requires DHHS to collect specified information related to maternal mortality to inform ongoing improvements to the training program.

Enacts GS 130A-33.63 specifying that a patient getting care at a perinatal care facility (a hospital, clinic, or birthing center providing perinatal care in the state) has six listed rights, including: to be informed of continuing health care requirements following discharge; to actively participate in decisions regarding the patient's medical care and the right to refuse treatment; and to receive care and treatment free from discrimination on the basis of age, race, ethnicity, color, religion, ancestry, disability, medical condition, genetic  information, marital status, sex, gender identity, gender expression, sexual orientation, socioeconomic status, citizenship, nationality, immigration status, primary language, or language proficiency. Requires perinatal care facilities to provide patients upon admission with a written copy of the rights.

Effective October 1, 2025.

Appropriates $2.5 million in recurring funds for each year of the 2025-27 biennium from the General Fund to DHHS, Division of Public Health, to establish and administer the training. Effective July 1, 2025.

Part III.

Appropriates $3 million for each year of the 2025-27 biennium from the General Fund to the UNC Board of Governors for recruiting, training, and retaining a diverse workforce of lactation consultants in North Carolina by supporting the infrastructure and sustainability of lactation consultant training programs at Historically Black Colleges and Universities located within the State, to be distributed equally between Bennett College, Fayetteville State University, Johnson C. Smith University, North Carolina Agricultural & Technical State University, and North Carolina Central University to cover costs of administering a lactation training program, including specified costs that include student aid. Requires DHHS to give technical assistance to those schools concerning developing training content, recruitment from historically marginalized populations to enroll, recruitment of historically underutilized providers to serve as teachers and preceptors, and identifying rural and medically underserved areas of the State experiencing a shortage of lactation consultants in order to recruit program graduates to work in these areas. Requires a report by May 1, 2028, to the specified NCGA committees on the benefits the state received due to the funding of the training programs. Sets out items that must be included in the report. Effective July 1, 2025.

Part IV.

Requires DHHS to establish a Perinatal Education Grant Program awarding competitive grants to eligible entities to establish or expand perinatal education programs in rural, underserved, or low-wealth areas of the State. Defines perinatal education program as one that operates for the primary purpose of educating pregnant women and their families about healthy pregnancy, preparation for labor and birth, breast feeding, newborn care, or any combination of these. Requires applicants to be community-based organizations that offer perinatal education and resources aligned with evidence-based practices for improving maternal health outcomes for black women. Requires DHHS to conduct outreach and application assistance beginning September 1, 2025. Requires outreach to give special consideration to eligible applicants who: (1) are based in, and provide support for, communities with high rates of adverse maternal health outcomes and significant racial and ethnic disparities in maternal health outcomes; (2) are led by black women; and (3) offer programs and resources that are aligned with evidence-based practices for improving maternal health outcomes for black women.

Requires individual grants to be no less than $10,000 or more than $50,000. Terminates the program on June 30, 2027. Requires DHHS to submit a report to the specified NCGA committee and division by October 1, 2028, on the specified information. Appropriates $3 million for each year of the 2025-27 fiscal biennium from the General Fund to DHHS for this grant program; allows DHHS to use up to 5% of these funds for administrative purposes. Effective July 1, 2025.

Part V.

Appropriates $6.5 million for each year of the 2025-27 biennium from the General Fund to DHHS, Division of Public Health (DPH) to create a Momni-Bus Initiative to fund efforts to expand access to maternal and infant health care and parenting programs, supports, and services to families residing in geographic areas of the State where there is limited or no access to maternity care services, including obstetric providers, a hospital or birth center, prenatal care, or postpartum care. Requires funds to be allocated in specified amounts for (1) a directed grant to the March of Dimes, Inc., and (2) for directed grants on a competitive basis to nonprofit, community-based, and faith-based organizations that offer programs, supports, and services aligned with evidence-based practices for a healthy pregnancy through the postpartum period, infant health and care, and parenting programs, supports, and services. Requires DPH to report to the specified NCGA committee and division by October 1, 2027, and October 1, 2028, on the grants that were awarded. Effective July 1, 2025.

Amends the definition of neglected juvenile under GS 7B-101, so that it is not considered neglect of a juvenile if a parent, guardian, custodian, or caretaker allows the juvenile to engage in independent activities, including those described, without adult supervision if a reasonable and prudent parent would consider the independent activity safe and appropriate based on the juvenile's age, maturity, and physical and mental abilities. 

Amends GS 110-91 to require all child care facilities to observe four requirements with respect to allergies, including (1) require each caregiver to receive training on the administration of epinephrine, (2) require emergency services to be contacted each time epinephrine is administered, (3) notifying the child's parents as described, and (4) adopt food service policies that address and limit exposure to allergens, with copies to be provided to the parents of the children attending the facility. 

Part I.

Amends GS 105-153.5 to allow a taxpayer to deduct from their adjusted gross income the amount by which the aggregate amount of losses or deductions of an S Corporation taken into account by a shareholder do not exceed the combined adjusted bases of the shareholder in the stock and indebtedness of the S Corporation. Requires a taxpayer to add to their adjusted gross income the amount by which the aggregate amount of losses or deductions of an S Corporation taken into account by a shareholder exceed the combined adjusted bases of the shareholder in the stock and indebtedness of the S Corporation. Effective for taxable years beginning on or after January 1, 2025.

Amends GS 105-153.5A, the net operating loss provisions, by adding that the statute applies only to individuals, estates, and trusts, applicable retroactively to taxable years beginning on or after January 1, 2022. Further amends GS 105-153.5A, effective for taxable years beginning on or after January 1, 2025, by adding to the modifications that apply when a taxpayer calculates their State net operating loss, so that the amount of their excess business loss is fully allowed as a State net operating loss.

Amends GS 105-160.2, concerning the income tax on estates, trusts, and beneficiaries, as follows. No longer requires that the income of an estate or trust that is being taxed, be for the benefit of a resident of this state or for the benefit of a nonresident to the extent that the income meets specified conditions, now requiring that tax be computed on the amount of the taxable income of the estate or trust that is (1) derived from NC sources and is attributable to the ownership of any interest in real or tangible personal property in North Carolina or (2) is derived from a business, trade, profession, or occupation carried on in North Carolina. Requires that the taxable income and gross income be apportioned and allocated to this State under GS 105-130.4 (allocation and apportionment of income for corporations). Makes additional clarifying and technical changes. Effective for taxable years beginning on or after January 1, 2025.

Amends GS 105-153.3 by amending the definition of resident as it applies to individual income tax, to now provide as follows. A resident who moves from the State during a taxable year is considered a resident until the resident has both established a definite domicile elsewhere and abandoned any domicile in this state. The fact of marriage does not raise any presumption as to domicile or residence. A resident individual is either of the following: (1) an individual who is domiciled in this state at any time during the taxable year or who resides in this state during the taxable year for other than a temporary or transitory purpose or (2) an individual who maintains a place of abode within the state and spends more than 183 days, including partial days, of the taxable year within the state (the absence of an individual from the state for more than 183 days raises no presumption that the individual is not a resident).

Amends GS 105-163.6, concerning when an employer must file returns and pay withheld taxes, as follows. Requires employers withholding an average of at least $2,000 of State income taxes from wages each month to file a return on a quarterly basis (was, by the date set under the Code for filing a return for federal employment taxes attributable to the same wages). Removes provisions related to extensions of time for filing a return. Sets out specified due dates for the withheld State income taxes based on the employer’s payday. Allows the Secretary of Revenue (Secretary) to close a taxpayer's withholding account if the taxpayer files on withholding returns or files returns showing no withholding of State income taxes for a period of 18 months.

Part II.

Enacts new GS 105-154.2, concerning federal partnership adjustments, as follows. Defines federal partnership adjustment as a change or correction arising from a partnership level audit or an administrative adjustment request that affects the calculation of a taxpayer's State tax. Defines additional terms as they apply to Part 2 (individual income tax) of Article 4 of GS Chapter 105. Requires that except in the case of a final federal partnership adjustment (as defined) required to be reported to the Secretary under the newly specified procedures, a partner must report and pay any State income tax due under GS 105-130.20 or GS 105-159 (both concerning federal determinations and amended returns). Requires, except for the distributive share of adjustments that have been reported as required above and an audited partnership that has made a timely election, a partnership and partner must report a final federal partnership as follows: (1) no later than 90 days after the final federal partnership adjustment, a partnership doing business in this state must: a. file an income tax return reflecting the partnership's final federal partnership adjustments, as modified by GS 105-153.5 and GS 105-153.6, and any other information required by the Secretary, and pay the additional amount due under GS 105-154(d) and GS 105-154.1, and b. notify each of its direct partners of the direct partner's distributive share of the final federal partnership adjustments, including any information necessary for the direct partner to properly file a State income tax return and (2) no later than six months after the final federal partnership adjustment, each direct partner subject to tax under this Article must file a State income tax return reporting the direct partner's distributive share of the adjustments reported to the direct partner under b above, as modified by GS 105-153.5 and GS 105-153.6, and any other information required by the Secretary, and pay any additional amount of tax due as if the final federal partnership adjustments had been properly reported. Allows an audited partnership to elect to report a final federal partnership adjustment arising from a partnership level audit, in a manner prescribed by the Secretary; makes such an election irrevocable and can’t be made if the required income tax return is not filed within the required period. Sets out additional provisions that apply to an audited partnership that makes this election, concerning reporting and payment of tax, and exceptions. Sets out provisions applying to the collection of taxes for failure to pay when this election is made. Makes direct and indirect partners of an audited partnership that are tiered partners, and all owners and beneficiaries of those tiered partners that are subject to taxation, subject to the reporting and payment requirements and entitles the tiered partners to make the election. Allows the Secretary to propose an assessment against a direct or indirect partner for tax due, if a partnership or tiered partner fails to timely make any report or payment. Binds the partnership’s direct and indirect partners to the actions of the State partnership representative and sets out actions the partnership representative has sole authority to do. Requires the Secretary to assess additional State tax arising from a final federal partnership adjustment.

Amends GS 105-228.90 by excluding a final federal partnership adjustment from the definition of federal determination. Amends GS 105-153.5 to require when calculating NC taxable income, that: (1) a taxpayer must add the amount by which the taxpayer's distributive share of partnership income, subject to the specified adjustments, is increased as a result of a final federal partnership adjustment and (2) a taxpayer may deduct the amount by which the taxpayer's distributive share of partnership income, as modified by the specified provisions, is decreased as a result of a final federal partnership adjustment. Requires the same additional deductions to federal taxable income under GS 105-130.5.

Amends GS 105-241.6, concerning the statute of limitations for refunds, to provide that if a taxpayer files a return reflecting a final federal partnership adjustment and the return is filed within the required time, the period for requesting a refund is the later of one year after the return reflecting the final federal partnership adjustment is filed or three years after the original return was filed or due to be filed. Makes the same changes to the timing for proposing an assessment under GS 105-241.8 but also adds that if there is a final federal partnership adjustment and the taxpayer does not file the return within the required time, the period for proposing an assessment of any tax due is six years after the date the Secretary received the final report of the final federal partnership adjustment.

Effective for taxable years beginning on or after January 1, 2025, and applies to federal partnership adjustments that become final on or after that date.

Part III.

Amends two of the conditions that can be met in order for a retailer who makes a remote sale to be considered engaged in business in North Carolina and subject to sales tax under GS 105-164.8 by specifying that a retailer who: (1) solely meets the condition of making gross sales in excess of $100,000 from remote sales sourced to this State, including sales as a marketplace seller, for the previous or the current calendar year, or meets both this condition and the one below, is engaged in business on the first day of the first calendar month occurring at least 60 days after the retailer's gross sales exceed the threshold and (2) solely meets the condition of being a marketplace facilitator that makes gross sales in excess of $100,000, including all marketplace-facilitated sales for all marketplace sellers, from sales sourced to this state for the previous or the current calendar year, or meets this condition and the one above, is engaged in business on the first day of the first calendar month occurring at least 60 days after the retailer's gross sales exceed the threshold.

Amends GS 105-164.3, which defines terms for sales tax purposes, by defining the Streamlined Sales and Use Tax Agreement as the one amended as of October 9, 2024 (was, November 7, 2023).

Amends GS 105-187.90 by changing the term "shared for hire ground transport" to "shared-ride service." Amends GS 105-187.95 by no longer specifying that the proceeds of the transportation commerce tax must be credited to the Highway Fund on a quarterly basis. Effective July 1, 2025.

Part IV.

Amends GS 105-113.39A to no longer require a wholesale dealer or retail dealer to obtain a vapor products license for locations where a remote seller receives or stores non-tax-paid products for delivery sales.

Amends GS 105-113.83A to no longer require the holder of a nonresident spirituous liquor vendor permit to register with the Secretary.

Amends GS 105-449.42 by changing the due date of tax for a motor carrier who is exempt from filing a return, to the last day of the month following the quarter in which the motor fuel or alternative fuel was used by the motor carrier (was, due when the tax is collectible under GS 105-241.22). Applies to taxes due on or after July 1, 2025.

Amends GS 105-449.60, which sets out definitions applicable to the taxation of gasoline, diesel, and blends, by (1) adding and defining the term renewable diesel; (2) amending the definition of diesel fuel so that it includes renewable diesel; and (3) expanding upon the definition of supplier to also include a purchaser of tax-paid motor fuel who introduces the respective tax-paid motor fuel into the terminal transfer system at a location other than an IRS-registered terminal, and a person who owns tax-paid motor fuel at the time it is placed in the terminal transfer system at a location other than an IRS-registered terminal. Amends GS 105-449.97 to also allow a licensed supplier to take a credit for tax-paid motor fuel in the terminal transfer system if: (1) the supplier is the original purchaser of tax-paid motor fuel placed in the terminal transfer system at a location other than an IRS-registered terminal or (2) the supplier owns tax-paid motor fuel at the time it is placed in the terminal transfer system at a location other than an IRS-registered terminal. Effective July 1, 2025.

Amends GS 105-449.69 to allow the Secretary to cancel an exporter license if the Secretary determines that an exporter is no longer operating in this state and has failed to comply with GS 105-449.75 (notification of discontinuation of business). Makes conforming changes to GS 105-449.76.

Amends GS 105-449.87 by updating a statutory cross-reference.

Amends GS 105-449.139, related to alternative fuel taxation and licensure, to allow the Secretary or their designee to inspect the records subject to audit and take three specified actions to determine tax liability.

Amends GS 150B-2, defining terms for GS Chapter 150B, by amending the definition of license to exclude licenses issued under Subchapter V of GS Chapter 105 (motor fuel taxes).

Amends the definition of gross wagering revenue under GS 18C-901, by specifying that it includes the cash value of any bonuses or promotional credits when returned to an interactive sports wagering operator in the form of a deposit or sports wager.

Part V.

Amends GS 105-228.90 by updating references to the Internal Revenue Code. Also amends the definitions of person, tax, and taxpayer to correct references to Article 84 (Primary Forest Product Assessment Act) of GS Chapter 106 instead of Article 81 (Corporations for Protection and Development of Forests).

Amends GS 105-23 to no longer allow the Secretary to waive the penalty for making payments in the wrong form, and changes the penalty for filing a frivolous return from up to $500 to up to $2,000.

Amends GS 105-249.2 to refer to when the period of time for returns and payments was disregarded instead of referring to extensions of time.

Part VI.

Amends GS 105-278.2 by clarifying that the real property being exempted from taxation must be used for human burial purposes.

Part VII.

Amends GS 105-187.1, by (1) adding and defining the term peer-to-peer vehicle sharing provider; (2) amending the definition of retailer to be those engaged in the business of offering short-term leases or rentals, long-term leases or rentals, or vehicle subscriptions for motor vehicles; and (3) amending the definition of short-term lease or rental to include peer-to-peer vehicle sharing providers. Amends GS 105-187.5 to require the payment of a tax on the gross receipts of a limited possession commitment by: (1) a retailer that purchases a motor vehicle for use as a limited possession commitment and makes an election under this statute and (2) a peer-to-peer vehicle sharing provider. Allows a retailer that has purchased a motor vehicle for a limited possession commitment to elect to pay this tax instead of the tax under GS 105-187.3 when applying for a certificate of title and sets out additional provisions related to this election. Makes organizational, conforming, and technical changes. Makes conforming changes to GS 105-187.3 and GS 105-187.4.

Amends GS 153A-156 and GS 160A-215.1 by no longer specifying that the county’s/city’s levy of a gross receipts tax on short-term leases or rental of vehicles is a substitute and replacement of the ad valorem tax excluded by GS 105-275. Makes conforming and clarifying changes. Makes clarifying changes to GS 105-550. Amends GS 105-551 to also allow levying a privilege tax on a peer-to-peer vehicle sharing provider if the customer takes delivery of the vehicle within the Authority’s territorial jurisdiction. Amends GS 105-552 by making conforming and clarifying changes.

Amends GS 20-280.15 by amending the definitions that apply to Peer‑to‑Peer Vehicle Sharing, as follows: (1) removes the definition of peer-to-peer vehicle sharing and the definition of shared vehicle owner; (2) changes the definition of peer-to-peer vehicle sharing program to refer to a business platform that connects registered vehicle owners that have not made an election under GS 105-187.5 with drivers to enable the sharing of vehicles for financial consideration; and (3) replaces the term "vehicle sharing provider" with peer-to-peer vehicle sharing provider and defines it as a person or entity that operates, facilitates, or administers a peer-to-peer vehicle sharing program. Amends GS 20-208.17 to allow airports to charge the fee and collect data for peer-to-peer vehicle sharing providers (was, programs).

Applies to gross receipts derived from rentals or leases billed on or after October 1, 2025.

Enacts new GS Chapter 114B, licensing of chatbots, as follows.

Defines chatbot as a generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium. Defines generative artificial intelligence system as one that uses artificial intelligence, as defined in the specified federal act, to generate or substantially modify image, video, audio, multimedia, or text content. Define additional terms used in the Chapter.

Requires obtaining a health information chatbot license before operating or distributing a chatbot that deals substantially with health information. Sets out information that must be included in the license application, including quality control and testing procedures, proof of insurance coverage, and documentation of the chatbot’ security measures and protocols. Requires the Department of Justice (DOJ) to review applications based on six criteria, including public safety considerations and risk management procedures. Requires DOJ to adopt rules to carry out this Chapter. Requires licensees to maintain professional liability insurance. Requires licensees to: (1) implement industry-standard encryption for data in transit and at rest, maintain detailed access logs, and conduct regular security audits no less than once every six months; (2) report any data breaches within 24 hours to DOJ and within 48 hours to affected consumers; (3) obtain explicit user consent for data collection and use; (4) provide users with access to their personal data; and (5) provide users with the ability to delete their data upon request. Requires licensees to clearly disclose six pieces of information, including the artificial nature of the chatbot, data collection and use practices, and emergency resources when applicable. Requires a licensee to: (1) demonstrate effectiveness through peer-reviewed, controlled trials with appropriate validation studies done on appropriate sample sizes with real-world performance data; (2) demonstrate effectiveness in a comparative analysis to human expert performance; and (3) meet minimum domain benchmarks as established by the DOJ.

Under new GS 114B-5, requires DOJ to enforce this Chapter and rules adopted under this Chapter. Requires the Attorney General to designate staff to the oversight and enforcement of this Chapter, who may enter, at reasonable times, any factory, warehouse, or establishment in which licensed chatbots are manufactured, processed, or held, and to inspect, in a reasonable manner and within reasonable limits and in a reasonable time. Also allows DOJ to conduct digital inspections of licensed chatbots. Requires treating information that is a trade secret or confidential commercial information as confidential. Requires providing the manufacturer or importer with a detailed report on identified deficiencies and required corrective actions. Includes recordkeeping and reporting requirements for manufacturers or importers.

Makes it illegal to: (1) introduce or deliver for introduction into state commerce any chatbot that deals substantially with health information without complying with these licensing requirements; (2) fail to comply with any requirement of this Chapter or any rule adopted hereunder; (3) refuse to permit access to or copying of any record as required by this Chapter; or (4) fail to report adverse events as required under this Chapter. Violations of GS 114B-5 are subject to civil penalties of $50,000, with the proceeds remitted to the Civil Penalty and Forfeiture Fund.

Includes a severability clause.

Effective January 1, 2026.

Part II.

Enacts new GS Chapter 170, Chatbot Safety and Privacy Act, as follows.

Defines covered platform as any person that provides chatbot services to users in this state, if the person (1) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (2) has more than 5,000 monthly active users in the US for half or more of the months during the last 12 months. Excludes from the term any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes. Defines legitimate purpose as a purpose that is lawful and in line with the stated objectives, functionalities, core services, and reasonable expectation of users on a platform. Defines other terms used in this Chapter.

Prohibits a covered platform from processing data or designing chatbot systems and tools in ways that significantly conflict with trusting parties’ best interests, as implicated by their interactions with chatbots. Sets out requirements for covered platforms, in carrying out their duty of loyalty in emergency situations, dusty of loyalty in preventing emotional dependence on a chatbot, duty of loyalty in chatbot identify disclosure, duty of loyalty in influence, duty of loyalty in collection, duty of loyalty when personalizing content, and duty of loyalty in gatekeeping of personal information.

Specifies that the duties between a covered platform and an end-user are be established through a terms of service agreement which is presented to the end-user in clear, conspicuous, and easily understandable language. Requires the terms of service agreement to (1) explicitly outline the online service provider's obligations, (2) describe the rights and protections afforded to the end-user under this relationship, and (3) require affirmative consent from the end-user before the agreement takes effect. Requires notification of material changes to the terms of service agreement and obtain renewed consent for such changes and requires the terms to be easily accessible to users at all times through the covered platform's application or website.

Requires the chatbot’s identification process to include the covered platform informing users that the chatbot has four specified features, including that it is not human or sentient, and is without personal preference or feelings. Requires users to give explicit and informed consent to interact with the chatbot, as described. Prohibits using deceptive design elements that manipulate or coerce users into providing consent or that obscure the nature of the chatbot or consent process. Requires repeating the chatbot identity communication and opt-in consent at the start of each new session with a user.

Requires covered platforms to: (1) ensure that all user-related data disclosed collected through conversations between users and chatbots or through third-party cookies, undergoes a process of de-identification prior to storage and analysis; (2) take reasonable care to prohibit the incorporation or inclusion of any sensitive personal information derived from a user during the use of a chatbot into an aggregate dataset used to train any chatbot or generative artificial intelligence system; and (3) store all chatbot conversations which does not include sensitive personal information for at least 60 days. Sets out further requirements related to these data privacy provisions.

Allows the Attorney General to bring a civil action when he has reason to believe that a covered platform has committed a violation, on behalf of the State’s residents, to: (1) enjoin any practice violating this Chapter and enforce compliance with the pertinent section or sections on behalf of residents of the State; (2) obtain damages, restitution, or other compensation, each of which must be distributed in accordance with State law; or (3) obtain such other relief as the court may consider appropriate.

Allows persons suffering an injury due to a violation of the Chapter to sue the covered platform to enjoin further the violation, recover damages in an amount equal to the greater of actual damages or $1,000 per violation, obtain reasonable attorneys’ fees and litigation costs; and obtain any other appropriate relief. Requires actions to be brought within two years after the person first discovered or reasonably should have discovered the violation. Prohibits a person from bringing more than one action against the same covered platform for the same alleged violation.

Includes a severability clause for the Chapter.

Effective January 1, 2026.

Section 1

Enacts GS 14-269.9 making it a Class A1 misdemeanor for a person to possess, purchase, or receive or attempt to do so, a firearm, machine gun, ammunition, or permits to purchase or carry concealed firearms if the person has been adjudicated guilty of or received a prayer for judgment continued or a suspended sentence for an offense under GS 14-32.5 (misdemeanor crime of domestic violence), or an offense in another state, that if committed here, is substantially similar to an offense under GS 14-32.5. Applies to offenses committed on or after December 1, 2025.

Section 2

Adds new Article 53D, Universal Background Check, to GS Chapter 14, providing as follows. Prohibits a federally licensed firearm dealer from selling, transferring, or delivering a firearm to a private person without conducting a background check that includes verifying the private person's identity by examining a government-issued identification card and conducting a check through the National Instant Criminal Background Check System. Makes it illegal for the following person to possess a firearm: (1) under an indictment or information for, or has been convicted in any state or in any court of the United States of, a felony (other than an offense pertaining to antitrust violations, unfair trade practices, or restraints of trade); (2) fugitive from justice; (3) unlawful user of or addicted to marijuana or any depressant, stimulant, or narcotic drug; (4) adjudicated mentally incompetent or has been committed to any mental institution; (5) alien illegally or unlawfully in the United States; (6) discharged from the US Armed Forces under dishonorable conditions; (7) has renounced his or her US citizenship; (8) subject to a court order that was issued after a hearing of which the person received actual notice, and at which the person had an opportunity to participate, that restrains the person from harassing, stalking, or threatening an intimate partner or child of the intimate partner, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child, and that includes a finding that the person represents a credible threat to the physical safety of the intimate partner or child, or by its terms explicitly prohibits the use, attempted use, or threatened use of physical force against the intimate partner or child that would reasonably be expected to cause bodily injury. Makes it illegal for a federally licensed firearm dealer to sell, transfer, or deliver a firearm to another person if the background check reveals that possession by the person would violate the law or if the dealer knows or has reason to know that the person is prohibited from possessing a firearm. Makes it a Class F felony for a federally licensed firearm dealer to sell, transfer, or deliver a firearm to a person in violation of this Article, or any person to provide materially false information to the dealer with the intent of illegally obtaining a firearm.

Makes it illegal for a private person to transfer a firearm to another without conducting a background check through a federally licensed firearm dealer and the firearm dealer verifying that the transfer is not illegal. Defines transfer. Requires a private person who transfers any firearm in a transaction subject to these requirements to keep a record of the transfer that includes specified information about the person to whom the transfer is made; specifies that the records are not public record but must be made avail to law enforcement agencies upon request. Sets out exceptions for transactions involving specified family members and guardians. Violations are a Class F felony. Applies to transfers of firearms occurring on or after October 1, 2025. 

Section 3

Reenacts the following as they existed immediately prior to their repeal: (1) GS 14-402 (Sale of certain weapons without permit forbidden); (2) GS 14-403 (Permit issued by sheriff; form of permit; expiration of permit); (3) GS 14-404 (Issuance or refusal of permit; appeal from refusal; grounds for refusal; sheriff's fee); (4) GS 14-405 (Record of permits kept by sheriff; confidentiality of permit information); (5) GS 14-407.1 (Sale of blank cartridge pistols); (6) GS 14-408.1 (Solicit unlawful purchase of firearm; unlawful to provide materially false information regarding legality of firearm or ammunition transfer); (7) GS 14-315(b1)(1) (includes as a defense to the prohibition on selling or giving a firearm to a minor that the person shows that the minor produced an apparently valid permit to receive the weapon); and (8) GS 122C-54(d2) (giving sheriffs access to the record of involuntary commitment for inpatient or outpatient mental health treatment or for substance abuse treatment required to be reported to the National Instant Criminal Background Check System). Applies to pistols sold, given away, transferred, purchased, or received on or after October 1, 2025.

Section 4

Enacts new GS 115C-76.37 requiring the governing bodies of public school units to create a policy requiring parents or guardians of students to submit a form before the start of each school year certifying that any firearms in their home are safely stored. Applies beginning with the 2025-26 school year.

Section 5

Includes a savings clause.

Enacts new GS 115C-81.66 requiring the State Board of Education to adopt standards for age-appropriate instruction on artificial intelligence for grades K-12. Requires the standards include basic concepts of artificial intelligence (AI), real work applications, economic, legal, and social issues surrounding the use of information provided by AI, and responsible, ethical use of AI. Requires that these standards allow for AI instruction to be included in the standards for computer science courses offered in middle and high schools. Applies beginning with the 2025-26 school year. 

Enacts new GS 115C-376.7, referred to as the Suicide, Safety, and Violence Education (SAVE) Students Act. Requires the Department of Public Instruction (DPI), in consultation with the Department of Health and Human Services, to keep a list of approved evidence-based training programs, including at least one that is free to a school, to be posted on DPI’s website for: (1) suicide awareness and prevention and violence prevention and (2) social inclusion. Sets out required content of training courses needed in order to qualify as a training program on these topics. Requires students in grades 6-12 to receive two hours or two standard class periods, whichever is shorter, of training each school year from one of the approved programs. Requires an hour each on suicide awareness and prevention and violence prevention, and on social inclusion. Allows a student to be excused from the training upon written request from a parent or guardian. Requires employees who have significant interaction with students as part of their routine duties to receive one hour of training each school year from an approved program on suicide awareness and prevention and violence prevention. Allows student training to count toward health education and employee training to count toward specified raining hours. Allows the creation of a student-led club focused on these issues in school with students in grades 6-12; sets out requirements for these clubs.

Amends GS 115-47, requiring local boards of education to adopt a school-based mental health plan, including a mental health training program and suicide risk referral protocol in accordance with GS 115C-376.5 and new GS 115C-376.7. Amends the following to require the already required mental health plans also be in accordance with new GS 115C-376.7: GS 115C-150.12C (applicable to regional schools); GS 115C-218.75 (applicable to charter schools), GS 115C-238.66 (applicable to regional schools); and GS 116-239.8 (applicable to laboratory schools).

Applies beginning with the 2025-26 school year.

Section 1

Titles the act as The Protect Our Schools Act.

Adds newly defined term, school walk zone (an area within a school zone, identified by the Department of Motor Vehicles (DMV) that is likely to sustain pedestrian traffic sufficient to render the speed limits designated in GS 20-141 unsafe) to GS 20-4.01 (definitions pertaining to the DMV). 

Amends GS 20-141.1 (speed limits in school zones and now, school walk zones) to require the Department of Transportation (DOT) to annually consult with the governing body of each public school unit and certain nonpublic school units to designate school walk zones that include (1) speed limits lower than the general speed limits set forth in GS 20-141 and (2) ensuring appropriate actions are taken to effectuate the reduced speed limit. Makes technical, organizational, and conforming changes. Now specifies that the penalties in this statute apply unless the conduct at issue is covered under some other provision of law providing greater punishment. Makes it Class 3 misdemeanor to drive a motor vehicle in a school zone or school walk zone without due care and resulting in injury to a minor. Amends GS 20-173 (concerning pedestrians’ right-of-way at crosswalks) to specify that, unless covered under some other provision of law providing greater punishment, a person who drives a motor vehicle in a school zone or school walk zone at a speed greater than the speed limit set and posted under this section is responsible for an infraction and is required to pay a penalty of $250; makes it a Class 3 if injury to a minor results. Effective December 1, 2024, and applies to offenses committed on or after that date.

Section 2

Establishes the Pedestrian Safety Enhancement Fund (Fund) as a special fund within DOT to support pedestrian safety initiatives. Appropriates $10 million from the Highway Fund to DOT in nonrecurring funds for fiscal year 2025-26 to be allocated to the Fund for the three purposes and the amounts specified in the act. Effective July 1, 2025.

Section 3

Effective December 1, 2025, and applies to offenses committed on or after that date.

Includes whereas clauses.

Section 1

Appropriates $90,250,000 in recurring funding for the 2025-27 biennium, from the General Fund, to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (Division), to continue implementing the prekindergarten program (NC Pre-K) and requires that the funds to be used to increase the number of slots available to 10,000 over the next three years, as specified. Sets out provisions for determining eligibility for the program. Requires the sites established under this section to have a 4 or 5 star rating. Allows the Division to use up to 3% of the funds for administrative expenses.

Appropriates from the Economic Development Reserve Fund and available ARPA funds to the Division, $6.8 million in recurring funds for each year of the 2025-27 biennium for a grant program for childcare facilities in census tracts where the ratio of children under age 5 to care providers exceeds 3:1. Sets out the amounts of the grants based on the number of children at the facility. Require a 15% grant match by recipients and requires them to commit to provide the service for at least five years. Requires $350,000 of the funds in each fiscal year to be used to employ a full-time program manager and allows $250,000 to be used for technical assistance.

Requires the Division to coordinate with other DHHS divisions to modernize inspection standards for childcare centers. Requires biannual inspections for 4- and 5-star childcare centers and an electronic checklist system for providers. Requires inspection standards to include reasonable space requirements (indoor and outdoor) and allow for expedited review for expansions by providers with three or more years in good standing. Requires these modernized standards to be implemented over 18 months. Requires the Division to use funds available to it to implement this requirement.

Appropriates $9,562,500 in recurring funds from the General Fund to the Division and $3,187,500 from the North Carolian Education Fund, for the 2025-27 biennium for a grant program for after school program in public school where more than 50% of the students receive free or reduced lunch. Requires the programs to operate at least three hours a day/5 days a week and provide academic support and transportation. Allows charging students a fee based on family income. Requires the Division to work with the Department of Public Instruction (DPI) to establish administrative guidelines for the program and in reporting on attendance and improvement in academic outcomes. Requires the report to be made to DHHS, DPI, and specified NCGA entries. Allows $400,000 to be used each fiscal year to employ program coordinators and a full-time director.

Section 2

Requires the maximum gross annual income for initial eligibility for subsidized child care to be based on the percentage of the federal poverty level as follows: (1) for age 0-5, 300%; and (2) for age 6-12, 133%. Requires fees for families required to share in child care costs to be based on 7% of gross family income. Gives priority to foster children, children with disabilities, and homeless children.

Requires the Division to use available funds from the Child Care and Development Fund to implement the specified scale for determining childcare subsidy eligibility for 2026-27.

Allows, for each year of the 2025-27 biennium, a taxpayer with children under age 6 and an income between 300-400% of the federal poverty level, a deduction of $1,500 for each qualifying child. Increase the deduction by the specified amounts for children with disabilities, infants, and children in a childcare desert.

Appropriates $22.9 million for the 2025-27 biennium from the General Fund to DHHS for on-site childcare providers to construct and renovate childcare facilities and provide childcare subsidies to employees; limits funds to providers with 10 or more employees.

Section 3

Appropriates $950,000 in recurring funds for each year of the 2025-27 biennium from the General Fund and the Child Care and Development Fund to the Division to enhance the pay of educators in licensed childcare facilities. Sets out the amount of the supplement based on educational levels and pays an additional supplement for infant-toddler specialization, bilingual certification, and rural locations.

Require the Division to implement 5-star rating system reforms by reducing documentation required to be submitted on a biannual basis; incorporate classroom assessment tools, such as CLASS and ERS; streamline staff qualification verifications; and increase subsidy reimbursement differentials.

Appropriates $1.8 million for 2025-26 from the General Fund and the Child Care and Development Fund, to the Division to administer a mentorship program for childcare providers seeking a star-level increase. Sets out requirements for mentors.

Section 4

Appropriates $2.8 million for each year of the 2025-27 biennium from the General Fund and the Child Care and Development Fund to the Division for retention bonuses to full-time childcare facility employees in licensed facilities. Sets out the amount of the bonus based on years of service.

Appropriates $2.8 million for each year of the 2025-27 fiscal biennium from the General Fund and Child Care and Development Fund to the Division to administer a professional development program for childcare workers, including specific topic and an online tracking and verification system.

Appropriates $9 million in recurring funds for each year of the 2025-27 biennium from the General Fund and Child Care and Development Fund to the Division to expand T.E.A.C.H. scholarships and sets amounts based on the degree; requires recipients to commit to continued employment in a childcare facility for at least one year.

Requires the Division to develop and administer an apprenticeship program for individuals desiring to work in the childcare industry. Sets out requirements for hours of experience, technical instruction, wages, and duration.

Section 5

Appropriates $5 million in recurring funds for each year of the 2025-27 fiscal year from the General Fund to the Division to enter into public-private partnerships with childcare facility owners to construct and renovate facilities, purchase equipment and materials, provide professional development, and provide quality enhancement projects. Sets out matching requirements.

Requires the Division to collaborate with DPI in in administering a grant program to expand school-based care facilities; defines eligible projects. Requires the Division to establish 12 regional hub-and-spoke support networks for family childcare. Requires the networks to share administrative services such as billing and enrollment, substitute pool management, bulk purchasing, professional development, business coaching and support, and quality improvement assistance. Requires this to be funded by using available funds from Child Care and Development Fund and funds from the General Fund appropriated for this purpose.

Requires the Division to develop and administer a universal Pre-K pilot program in 5 counties, one urban with a population of less than 500,000; two suburban with a population of 100,000 or more but less than 500,000; and two rural counties with a population of less than 100,000, to provide for universal eligibility of all 4 years olds in the State; a mixed delivery system of public schools, Head Start, and private childcare centers; a full day of 6 hours or more required; standardized quality requirements across setting; and a common enrollment system. Requires the program to be funded with funds from the General Funds with a match of 15% from the participating counties.

Section 6

Requires the Division to give 20% of the additional subsidy money provided in this act to parents of infants and toddlers in childcare. Also requires using funds to fund one family engagement navigator in each county and for a database of all ECE professionals. Requires this program to be funded by the General Fund and the Child Care and Development Fund.

Requires the Division to implement a program to assist businesses providing childcare, that includes fast tracking licensure with a 14-day review for employer sponsored centers; tax credits of at least $1,000 per employee for proving flexible work hours; and regional childcare coordinators.

Section 7

Effective July 1, 2025.

Includes whereas clauses.

Amends GS 93D-14 to exempt a person who holds a valid unrestricted license as an audiologist, audiology assistant, or certified technical from licensure under GS Chapter 93D (North Carolina State Hearing Aid Dealers and Fitters Board) (was, a person who has both a doctoral degree in audiology and holds a valid permanent license as an audiologist was exempt). Removes provisions: (1) requiring a person to become a registered apprentice or be licensed before fitting or selling hearing aids if they do not have both a doctoral degree in audiology and hold a valid permanent license a an audiologist; and (2) subjecting an audiology assistant or certified technical being supervised by a licensee or a person exempt from licensure to the provisions of GS Chapter 93D and requiring those persons to be registered as an apprentice or licensed before fitting or selling hearing aids.

Enacts new GS 93D-7.1 requires a licensed person who sells locked hearing aids to provide the purchaser with the specified written notice about who can service or program the hearing aid, before consummating the sale, and requires it to be signed by the purchaser and retained by the seller. Defines a locked hearing aid as a hearing aid that uses either proprietary programming software or locked, nonproprietary programming software that restricts programming or servicing of the device to specific facilities or providers. Also requires giving the purchaser a written receipt signed by the licensee that contains specified information about the sale and the hearing aid, including specified information about the licensee and any terms of any guarantee or written warranty made to the purchaser with respect to the hearing aid. Requires the licensee to keep specified records for each hearing aid sold, for at least seven years.

Enacts new GS 90-308, requiring audiologists to meet the same requirements as those in GS 93D-7.1 when fitting or selling locked hearing aids to patients.

Allows the North Carolina State Hearing Aid Dealers and Fitters Board to adopt rules to implement these requirements.

Effective October 1, 2025.

Amend GS 105-113.128, concerning the use of proceeds from the tax on interactive sports wagering operators to require that $11 million be credited annually to the Department of Public Instruction to be allocated to eligible public school units for salary supplements to all eligible athletic coaches to ensure that each eligible athletic coach receives a total annual salary supplement for serving as an athletic coach of at least $3,000 in State and non-State funds. Requires eligible public school units providing non-State funds for salary supplements for athletic coaches in the prior school year to continue to provide at least that amount. Defines an eligible athletic coach as a person employed full-time in a public school unit who serves as an athletic coach and who receives a salary supplement from non-State funds for serving as an athletic coach that is equal to or less than $3,000 each school year. Define eligible public school unit as a public school unit that reports to the Department of Public Instruction by August 15 of each year on the amount of non-State funds provided for salary supplements for athletic coaches in the prior school year. Allows any unexpended funds to be allocated to the North Carolina Alliance of YMCAs, Inc. to support youth sports programming in the state. Effective July 1, 2025, and applies beginning with the 2025-26 school year.

Contains whereas clauses.

Section 1.

Amends the disabled veteran property tax homestead exclusion (GS 105-277.1C) as follows, effective for taxable years beginning on or after July 1, 2025. Increases the amount of the exclusion to the first $75,000 of the appraised value of the veteran’s residence (was, the first $45,000 of the appraised value). Effective for taxable years beginning on or after July 1, 2026, increases the amount of the exclusion to the first $125,000 of the appraised value and to the lesser of $500,000 or 100% of the appraised value of the residence starting July 1, 2027. Specifies that a qualifying owner who receives an exclusion under GS 105-277.1C is not eligible for any other property tax relief.

Sets a holds harmless amount as the appraised value of the property excluded from taxation under the disabled veteran’s property tax homestead exclusion, multiplied by the applicable local tax rate. Sets a total hold harmless amount as the sum of the hold harmless amount for all property excluded from taxation under this statute in the county multiplied by 50% plus the hold harmless amount for all property excluded from taxation under this statute in the cities located in the county multiplied by 50%.

Requires counties and cities to notify the Secretary of Revenue (Secretary) of the total hold harmless amount and disallows reimbursement to the local government if it fails to notify the Secretary by the due date. Requires the Secretary to reimburse the city or county on or before December 31 of each year, provided however, that if the hold harmless amount for any city or county exceeds 1% of its total general fund revenue for the most recent fiscal year, the Secretary will also reimburse that city or county for all amounts exceeding that threshold. Requires county to disperse attributable reimbursement funds to cities within the county. Requires cities or counties that received funds because they were collecting taxes for another unit of government or special district to credit those funds to those units in accordance with regulations issued by the Local Government Commission. Pays for the reimbursement and the Secretary’s costs in administering the reimbursement by drawing those from the individual income tax revenues received under Part 2 of Article 4 in GS Chapter 105.

Allows for disabled veterans or their surviving spouses who have not remarried to apply for prequalification of the homestead exemption tax relief, even before purchasing a property, so long as a prequalified veteran/eligible spouse applies for the property tax relief when purchasing the property. Sets forth an application process and notice requirements. Makes conforming changes.

Effective for tax years beginning July 1, 2025, except as otherwise specified.

Section 2.

Amends GS 105-275 (Property classified and excluded from the tax base) to exclude from property tax any motor vehicles owned by a person who has a 100% disability rating certified by the US Department of Veterans Affairs and that are used by that person as their primary personal vehicle. Excludes vehicles used primarily for business or commercial purposes.

Amends GS 105-330.4 (concerning motor vehicle property taxes), as follows. Sets a holds harmless amount as the appraised value of the property excluded from taxation under the disabled veteran’s property tax motor vehicle exclusion, multiplied by the applicable local tax rate.  Sets a total hold harmless amount as the sum of the hold harmless amount for all property excluded from taxation under this statute in the county multiplied by 50% plus the hold harmless amount for all property excluded from taxation under this statute in the cities located in the county multiplied by 50%.

Requires counties and cities to notify the Secretary of Revenue (Secretary) of the total hold harmless amount and disallows reimbursement to the local government if it fails to notify the Secretary by the due date. Requires the Secretary to reimburse the city or county on or before December 31 of each year, provided however, that if the hold harmless amount for any city or county exceeds 1% of its total general fund revenue for the most recent fiscal year, the Secretary will also reimburse that city or county for all amounts exceeding that threshold. Requires county to disperse attributable reimbursement funds to cities within the county. Requires cities or counties that received funds because they were collecting taxes for another unit of government or special district to credit those funds to those units in accordance with regulations issued by the Local Government Commission. Pays for the reimbursement and the Secretary’s costs in administering the reimbursement by drawing those from the individual income tax revenues received under Part 2 of Article 4 in GS Chapter 105.

Applies to motor vehicles registered on or after the act becomes law and motor vehicle property tax exemptions occurring on or after that date.

Section 3.

Appropriates $10 million from the General Fund to the Department of Military and Veterans Affairs (Department) for 2025-26 to be used to establish the Veterans’ Economic Development Incentive Grant Program (Program), to provide financial assistance in the form of grants to eligible entities to promote affordable housing initiatives for veterans, infrastructure improvements for veterans, and veteran employment programs. Specifies that the funds do not revert but remain available until they are expended. Contains definitions. Provides for an application and awards on a first-come, first-served basis. Caps the grant amount at $100,000 per qualifying project. Allows the Department to retain up to 5% of the appropriated funds for administrative expenses.

Section 4.

By no later than September 1 of each year, requires the Department to provide a report to the specified NCGA committee and the Fiscal Research Division that contains the following:

1. An assessment of the financial impact on local governments of the provisions of this act.
2. Data on the number of veterans benefitting from the homestead exclusion and motor vehicle tax exemption, as modified by this act.
3. An evaluation of whether the Veterans' Economic Development Incentive Fund has contributed to workforce development for veterans, infrastructure improvements for veterans, and affordable housing initiatives.

Adds new Part 5A, Upland Basis, to Article 7 of GS Chapter 113A, providing as follows.

Sets out NCGA findings and the intent that the Part be broadly construed to further the Part’s general purposes. Defines an upland basin as a marina constructed by excavating or dredging lands of elevations above the current mean or ordinary high-water mark and designed to accommodate more than ten vessels or boat slips. Considers upland basins a water dependent use for purposes of general use standards adopted by the Coastal Resources Commission.

Requires, unless the Director of the Division of Water Resources makes a finding, based on site-specific technical information that the applicant cannot substantially comply with one or more of the criteria specified in the statute, that the Division of Water Resources and the Division of Coastal Management approve an application for the development of an upland basin project, within 60 days after the applicant submits a completed application or requested supplemental information. Sets out provisions governing requests for supplemental information. Deems an application approved if the Department of Environmental Quality (DEQ) fails to act on an application for the development of an upland basin project within the 60-day review period. Sets out 10 criteria with which an upland basin must comply to qualify for permitting, including: (1) the upland basin is designed to accommodate ten or more vessels, including individual homeowner boat slips, boat lifts, or dry stack storage; (2) the waters contained in the upland basin meet the specified standards for dissolved oxygen content; (3) construction of the upland basin impacts or removes a total area of coastal wetlands that is no more than 5% of the total area of the proposed upland basin waters; (4) construction of the upland basin impacts or removes a total linear footage of coastal wetlands fringe that is no more than 10% of the total linear footage of existing coastal wetlands along the shoreline of the property or properties of the permit applicant; and (5) the upland basin has a 30-foot vegetated buffer along the post-project shoreline. Provides that once an upland basin has operated for at least 24 months, if the Director of the Division of Water Resources determines that additional information is needed to assure long-term compliance with water quality standards, the owner must be notified to provide information necessary to address these concerns. Sets out provisions applicable when a Major Development Coastal Area Management Act permit application has been submitted for a project. Allows the transfer of any permit and related authorizations and approvals for an upland basin project. Sets out provisions under which an applicant for an upland basin project is allowed to use innovative technology to maintain dissolved oxygen levels or to improve dissolved oxygen, including requiring financial assurance. Deems an upland basin project that satisfies the 10 criteria above to also satisfy other specified provisions, including the requirements for a state water quality certification, CAMA management objects and use standards of coastal wetlands AEC and estuarine and ocean system AEC. Allows, when data indicates material noncompliance with applicable water quality standards in the waters within the upland basin or adjacent waters within the vicinity of each entrance to the upland basin, DEQ to require the owner to bring the waters within the upland basin and adjacent waters into compliance with applicable water quality standards.

Titles the act the Government Modernization Act of 2025. Sets out findings and sets the purpose of the act as modernizing NC’s government operations by implementing advanced technological solutions to enhance efficiency, security, and accessibility in public services.

Requires the Department of Information Technology (DIT) to oversee the modernization of IT infrastructures across all agencies, including: (1) upgrading outdated legacy systems to enhance interoperability and efficiency; (2) implementing cloud-based solutions for improved data management and service continuity; and (3) establishing centralized digital records management to facilitate inter-agency coordination and reduce redundancies. Requires state agencies to assess their current IT infrastructure within six months of this act becoming law and submit a modernization plan to DIT for its review and implementation.

Requires the State Chief Information Officer to develop and implement enhanced cybersecurity protocols that include the specified components.

Establishes the State Cybersecurity Take Force to oversee the implementation of security measures and report annually to the NCGA on progress and emerging threats.

Requires DIT to consult with the Department of Administration in studying ways in which integrating blockchain technology may contribute to the specified outcomes. Requires DIT to report its findings to the specified NCGA committee no later than 12 months after the act becomes law.

Requires state agencies to expand and improve upon online services, including: (1) digital application and processing for licenses, permits, and public records; (2) online portals for tax payments, business filings, and other essential government functions; and (3) mobile-friendly platforms to enhance accessibility. Requires the Office of Digital Transformation to be established in DIT to oversee this digitization.

Requires the NCGA to appropriate funds for the implementation of this act, with priority given to funding for IT infrastructure upgrades, cybersecurity enhancements, blockchain pilot programs, and the expansion of technology partners to ensure cost-effective and innovative solutions in the implementation of this act.

Requires DIT to report annually to the NCGA on implementation status, challenges, and recommendations related to government modernization efforts. Requires the establishment of the Joint Legislative Oversight Committee on Digital Governance to oversee implementation and compliance with this act.

Effective July 1, 2025, and expires June 30, 2030.

Enacts GS 143-59.5 preventing the State and its political subdivisions from purchasing or otherwise acquiring any small, unmanned aircraft system manufactured or assembled by a covered foreign entity. Prohibits State funds from being used in connection with the purchase or acquisition of any small, unmanned aircraft system (defined) manufactured or assembled by a covered foreign entity, including any State funds provided through a contract, grant, or cooperative agreement. Defines covered foreign entity as an individual, foreign government, or party that meets one or more of the following:

• Is on the United States Consolidated Screening List or Entity List.
• Is domiciled in the People's Republic of China or the Russian Federation.
• Is under the influence or control of the government of the People's Republic of China or the Russian Federation.
• Is a subsidiary or affiliate of an individual, government, or party of the People's Republic of China or the Russian Federation.

Applies to small, unmanned aircraft purchased on or after July 1, 2027.

Part I.

Enacts Article 11C, GS Chapter 131E, to be cited as the Medical Debt Protection Act (Act). States the Article's legislative purpose. Includes 15 defined terms. Requires all large health care facilities (defined to include licensed hospitals, outpatient clinics and facilities affiliated with licensed hospitals, licensed ambulatory surgical centers, and other practices providing specified services with revenues of at least $20 million annually, and professionals offering services in one of these locations) to develop a written financial assistance policy called a medical debt mitigation policy (MDMP) pursuant to the Article and any implementing rules. Defines an MDMP to include seven components, including the basis for calculating amounts charged to patients and the method for applying for financial assistance, as well as eligibility criteria for financial assistance. Makes the requirements applicable regardless of federal law requirements. Further details required content of an MDMP and requires its approval and annual review by the owners or governing body of the health care provider. 

Establishes seven steps a large health care facility (facility) must take before seeking payment for any emergency or medically necessary care, including determining the patient's health care insurance status, offering to screen a patient for insurance eligibility and other public programs that assist in health care costs, determining qualifications for free or discounted care under the MDMP, and determining eligibility for financial assistance under the facility’s Presumptive Eligibility Policy. Requires the facility to accept and consider a patient's application for financial assistance submitted within one year of the date of the first bill; however, if the patient is the subject of collection activity by the facility or a medical debt collector and the patient submits an application for financial assistance, the large health care facility must accept and process the application at any time. Provides that for applicants eligible for financial assistance, no initial monthly payment is due within the first 90 days after the health care services were provided. Requires the creation of an appeals process for those denied financial assistance.

Sets the following terms for patients who qualify for financial assistance under the MDMP, applicable to charges for health care services not covered by insurance and would be billed to the patient: (1) patients with household incomes of 0%-300% of the federal poverty level shall receive free care; (2) patients with household income of more than 300% up to 400% of the federal poverty level will be charged no more than an amount calculated in the following manner: a. recalculate the patient's bill using the Medicare reimbursement rate applicable on the dates of service, b. the patient shall be charged no more 25% of the recalculated bill; (3) patients with household incomes of more than 400% up to 600% of the federal poverty level shall receive the same discount listed in (2) if the patient or the patient's household has incurred medical expenses during the previous 12 months which in total exceed 5% of the household's income; and (4) in addition to other financial assistance provided under this Article, no patient with a household income at or below 400% of the federal poverty level shall be required to pay more than $2,300 in cumulative medical bills to large health care facilities in any 12-month period. Upon patient request and documentation, any health care services that have been delivered by one or more large health care facilities after the $2,300 limit has been met must be provided as free care.

Requires the facility to adopt a process to screen for presumptive eligibility for financial assistance and establish a process for determining non-presumptive eligibility. Prohibits billing a patient until the patient has been screened for presumptive eligibility and notified if eligible. Sets out requirements for the presumptive eligibility screening. Requires patients found to not be presumptively eligible for financial assistance to be given a process to apply to financial assistance that meets the listed requirements.

Sets out ways in which the large health care facility must publicize its MDMP, including making the policy and financial assistance application easily accessible online. Requires that the patient be informed of any financial assistance policy with every written and oral attempt by a medical creditor or debt collector to collect medical debt for health care services provided by a large health care facility. Includes translation requirements for MDMPs and other language access accommodations required by a large health care facility. 

States four prohibited collection actions, including causing arrest or garnishing wages or tax refunds. Prohibits medical creditors and medical debt collectors from engaging in permissible extraordinary collection actions, as defined, until 180 days after the first bill for a medical debt has been sent, and before which specified notice requirements must be met at least 30 days prior to taking such actions. Prohibits a large health care facility or medical debt collector from taking extraordinary collection actions to collect debt for health care services provided by the facility unless the actions are described in the facility's billing and collections policy. Requires reversal of extraordinary collection actions taken when a patient is later found eligible for financial assistance. 

Requires large health care facilities to post price information online as described, including using gross charges for services and listing amounts Medicare would reimburse for the service. 

Provides immunity from liability for spouses or other persons for the medical debt or nursing home debt of another adult, and prohibits a person from voluntarily consenting to assume such liability.

Requires providing an itemized bill before requesting payment, or within 60 days of a patient's request. Sets out what must be included in the bill. Prohibits a medical creditor or medical debt collector that knows or should have known about an internal review, external review, or other appeal of a health insurance decision that is pending now or within the previous 180 days from: (1) communicating with the consumer regarding the unpaid charges for health care services for the purpose of seeking to collect the charges or (2) initiating a lawsuit or arbitration proceeding against the consumer relative to unpaid charges for health care services.

Sets limits on the interest that may be charged on medical debt and on judgments on such debt. Requires medical creditors and medical debt collectors to offer patients qualifying for financial assistance or owning over $5000 a payment plan no less than 36 months, with payments limited to 5% of the patient’s household income. Sets out additional provisions governing such payment plans.

Provides requirements for providing receipts of medical debt payments to consumers. Provides for debt forgiven by a medical center to not constitute a breach of contract between the medical center and the insurer or payor. 

Creates a private right of action for a consumer against whom a violation of the Article occurs for the greater of up to treble the amount of damages incurred, or civil penalties of $500-$4,000 per violation. Allows for injunction or other equitable relief. Allows a consumer to bring an action for violations within four years from the occurrence of the violation. Prohibits MDMPs from waiving the patient's right to resolve a dispute by equitable relief, the award of damages, attorneys' fees and costs, or an evidentiary hearing. Deems any waiver by any patient or consumer of rights and protections under the Article void. Grants enforcement authority to the Attorney General and requires the AG to establish a complaint process, which is deemed a public record.

Requires large health care facilities to annually file their MDMP with the Department of Health and Human Services (DHHS), as specified, with DHHS required to post the reports in a searchable online database, and annually prepare a consolidated report. Requires DHHS to consult with specified entities to develop materials to inform the public about MDMP policies.

Includes a severability clause.

Exempts federally qualified health centers from several of the above provisions.

Effective June 1, 2025, and applies to medical debt collection activities occurring after that date and to agreements and contracts entered into, amended, or renewed on or after that date.

Part II.

Repeals GS Chapter 44, Article 9A (liens for ambulance service) and Article 9B (attachment or garnishment and lien for ambulance service in certain counties).

Part III.

Amends GS 105A-2 by amending the definition of debt as it applies to the Setoff Debt Collection Act by removing the provisions concerning debt for UNC constituent institutions schools of medicine, clinical programs, or affiliated practices that provide care to the general public and for the UNC Health Care System and those under the System’s control.

Part IV.

Provides that this act controls over GS 131E-91, GS 131-99, and GS 131E-147.1 in the event of conflict.

Enacts Article 18J to GS Chapter 90 and titles the article the “Mental Health Licensure Recognition Act (Act).” Sets forth seven defined terms. Enacts GS 90-270.202 allowing a licensed mental health professional licensed or certified in another State to be able to practice in their respective scopes of licensure in this State under the appropriate licensing board in accordance with the Act. Requires a licensed mental health professional seeking to qualify for such licensure to comply with six listed criteria including having engaged in the active practice of the occupation for which the person is seeking a license or certification from the occupational licensing board in this State for at least two of the five years preceding the date of the application and not having committed any act in any jurisdiction that would have constituted grounds for refusal, suspension, or revocation of a license to practice that occupation in this State at the time the act was committed and has no pending complaints. Requires the applicable licensing board to issue a decision on an application within 60 days of receiving a completed application, as described. Clarifies that the act does not supersede or invalidate any existing interstate compact or reciprocity agreement, including Articles 24A and 18H of GS Chapter 90. Directs the Board of Licensed Clinical Mental Health Counselors, North Carolina Psychology Board, North Carolina Marriage and Family Therapy Licensure Board, and the North Carolina Medical Board to adopt rules to implement the provisions of the act.

Effective October 1, 2025.

Titles the act the NC Survivors’ Act (Act). Adds new Part 4 to Article 81B of GS Chapter 15A. Applies the Act to all criminal sentencing procedures. Defines five terms. Enacts GS 15A-1340.27 (concerning survivor sentencing) requiring, during a hearing to sentence a person or for a person to accept a plea of guilty, when that person is a survivor of domestic violence and has been charged with a crime, the court to consider as a mitigating factor that the person has been abused physically, sexually, or psychologically by the person's sexual partner, family member, or member of the household, the trafficker of the person, or other individual who used the person for financial gain. Requires the defendant to provide to the court evidence as described. If the court finds by clear and convincing evidence that the defendant was a survivor of domestic violence as described and that the violence or abuse was related to and was a substantial contributing factor in causing the defendant to commit the offense or to the defendant's criminal behavior, the court must depart from the applicable sentence and use the lower ranges provided by the act. Exempts persons convicted of any five described convictions, including any offense that would require the person to register as a sex offender.

Enacts GS 15A-1340.28 requiring, where a court has imposed a criminal judgment and sentence upon a defendant other than for an offense exempt from GS 15A-1340.27 and the defendant is serving the sentence in the custody of the Department of Adult Correction, the court to impose a new, lesser sentence following a hearing if the court determines each of the following: (1) at the time of the offense for which the sentence is being served, the defendant was a victim as described above or (2) the violence or abuse was related to and was a substantial contributing factor in causing the defendant to commit the offense for which the defendant is presently in custody or the defendant's criminal behavior. Provides for a hearing on the issue and a process for a request for resentencing. Provides for assistance of counsel. Provides for the resentencing hearing procedure for a resentencing application received under GS 15A-1340.28 in new GS 15A-1340.29, as described.

Effective December 1, 2025.

Section 1.

Requires the Department of Administration (DOA) to report to the specified NCGA committees by no later than March 31, 2026, on the feasibility and advisability of using obsolete or underutilized State-owned buildings (available buildings) to house childcare facilities giving childcare priority to State employees, as described.  Instructs that any project undertaken by the State to build or renovate property having a budget greater than $5 million must include a child care center or adult day care center if more than 250 people would work in the building. Directs that the requirement includes current projects which have not broken ground by July 1, 2025 unless one or both of two exceptions apply: (1) inclusion of either type of center would delay the project by six months or more or (2) inclusion of either type of center would increase the project by 10% or more.

Section 2.

Establishes a pilot program for onsite childcare for State employees under the Division of Child Development and Early Education (Division) requiring the Division to contract with a private commercial childcare provider to establish three childcare centers for State employees to be established on State-owned property that is unused or underutilized. Directs that priority in contracting be given to commercial childcare providers that currently operate five or fewer facilities and provide high quality childcare. Provides for contract terms as described, including that the childcare facility must operate an apprenticeship program in conjunction with public or private university or community college who operates an early childhood education program. Tasks the Division with creating the requirements for the apprenticeship program and pair the childcare centers with a university or community college early education program utilizing parameters similar to the Durham Childcare Apprenticeship Program.

Appropriates $5 million from the General Fund to the Department of Health and Human Resources (appears to intend Health and Human Services) for 2025-26 for the Division’s use in establishing the childcare centers. Specifies that if any expenses are incurred by the State for asbestos or lead remediation in establishing the childcare centers required under the act, the State is eligible for reimbursement from the Asbestos and Lead Remediation Fund subject to the rules of the fund for up to $500,000. Effective July 1, 2025.

Requires the Division to report on and make recommendations to the specified NCGA committees and the Fiscal Research Division on the status of the implementation of the pilot program including successes, concerns, problems encountered, enrollment, and expenditures by April 1, 2027.

Adds new Part 4, sentencing primary caretakers, in Article 81B of GS Chapter 15A, providing as follows.  

Defines a primary caretaker of a dependent child as either: (1) a parent who has consistently assumed responsibility for the housing, health, and safety of a child prior to the parent's incarceration, or (2) a woman who has given birth to a child after or while awaiting the woman's sentencing hearing and who expresses a willingness to assume responsibility for the child’s housing, health, and safety. Specifies that a parent who, in the child’s best interest, has arranged for the temporary care of the child in the home of a relative or other responsible adult will not be excluded from the definition of "primary caretaker of a dependent child," solely for that reason.

Requires the sentencing court, before sentencing a person for an offense, to determine if it was a nonviolent offense and if the convicted person is a primary caretaker of a dependent child; if so, the court must impose an individually assessed sentence, without imprisonment, based on community rehabilitation, with a focus on parent-child unity and support. Allows the court to require the person to meet certain appropriate conditions, including any of the 11 listed conditions, including anger management, financial literacy, and parenting classes. Allows the court to also require the person to appear in court anytime during the person’s sentence to evaluate their progress in treatment or rehabilitation, or to determine if the person has violated any conditions of the sentence. Allows the court, during such an appearance, to modify the conditions, decrease the duration of the sentence because of the person’s advancement, or sanction the person for violations of the conditions, including requiring serving a period of confinement.

Creates new GS 160D-804.2 (Temporary maintenance and acceptance guarantees), allowing counties to require developers to post a maintenance guarantee for any publicly dedicated roadway to be transferred for public maintenance under GS 136-102.6 or any municipal ordinance. Provides for the acceptable forms of guarantee including surety bonds and letters of credit, and establishes a maximum of 20% of the reasonably estimated cost of construction for the road or street secured by the guarantee. Specifies that the appropriate use of the guarantee is to ensure the road or street meets the minimum standards of the roadway’s administering entity prior to acceptance into the roadway system. Requires a county to petition the administering entity for road addition to its roadway system within five days of completed construction once the guarantee has been used. Requires the administering entity to automatically accept a road or street if it has not been accepted into the applicable roadway system for maintenance for four years after the plat has been recorded with the register of deeds. Outlines procedures for acceptance of the road or street and release of a guarantee, and legal responsibilities.

Sets forth the act’s purpose and findings, including to provide additional funding and awareness of Chronic Wasting Disease (CWD) in the State's deer population and to enhance wildlife conservation programs, especially northern bobwhite quail habitat restoration and red wolf recovery initiatives.

Appropriates $5 million from the General Fund to the Wildlife Resources Commission (Commission) for 2025-26 to expand statewide monitoring, reporting, and mitigation efforts for CWD, including the creation of an incentive program to provide cash bounties to any person reporting a confirmed positive CWD case, a reduced-price hunting license to hunters participating in CWD tracking programs, and grants for research into CWD transmission and mitigation to universities and nonprofit wildlife research entities.

Appropriates $5 million from the General Fund to the Commission for 2025-26 to establish a statewide habitat restoration initiative for northern bobwhite quail, through at least the three described programs, including a cost-share program to provide matching grants of up to $5,000 to landowners who agree to participate in northern bobwhite quail habitat restoration activities on their lands, and a study on sustainable quail hunting regulations, with a report on this study due to the specified NCGA committees by December 1, 2026.

Appropriates $5 million from the General Fund to the Commission for 2025-26 to establish two initiatives for red wolf conservation and rural support, including a cost-share program to provide matching grants of up to $10,000 to landowners who agree to provide protected habitat for red wolf populations on their land. Requires the Commission to report on its implementation including any recommendations for funding needs and legislative changes to accommodate making these initiatives permanent, to the specified NCGA committee by no later than December 1, 2027.

Requires the Department of Transportation (DOT) to utilize the grant received from the Federal Highway Administration's Wildlife Crossings Pilot Program to install wildlife crossings for red wolves on U.S. Highway 64 in and adjacent to the Alligator River National Wildlife Refuge.

Requires the Commission to adopt rules to revise its fees and fee payment for lifetime hunting and fishing licenses in the following revenue neutral manner: (1) create the specified age-based categories, with the middle-aged adult category charged the maximum fee, seniors receiving a 50% discount on the maximum fee, and younger age groups charged less than older age groups; (2) multi-generational license discounts to families purchasing three or more lifetime licenses at the same time; and (3) offer a monthly installment payment options for licenses that are over $1,000. Directs the Commission to seek sources of funds from non-State sources for the initiatives funded by the act, including grants from federal and nonprofit wildlife conservation organizations. Requires the Commission to provide a report on its implementation of the above as part of its annual report required by GS 143-250.

Effective July 1, 2025.

Enacts new GS 143B-1278, providing as follows. Defines veterans' benefits matter as the preparation, presentation, or prosecution of a claim affecting an individual who has filed or expressed an intent to file a claim for a benefit, program, service, commodity, pension, function, or status, the entitlement to which is determined under the laws and regulations administered by the US Department of Veterans Affairs or the Department of Military and Veterans Affairs pertaining to veterans, their dependents, their survivors and any other individual eligible for such benefits. Prohibits a person from: (1) receiving compensation for preparation, presentation or prosecution of, or advising, consulting, or assisting an individual with an initial disability claim related to a veterans' benefits matter, except as permitted by this statute; (2) receive compensation for referring an individual to another person to prepare, present, prosecute, or advise, consult, or assist the individual with, a veterans' benefits matter; (3) directly or by implication guarantee or advertise that any individual is certain to receive specific veterans' benefits or that any individual is certain to receive a specific level, percentage, or amount of veterans' benefits; (4) a person seeking to receive compensation for advising, assisting, or consulting any individual with any veterans' benefits matter or engaging in the preparation of an initial claim for a fee shall not: a. aggressively or directly solicit business regarding any veterans' benefit matter, or b. gain direct access to any personal medical, financial, or government benefits log in, username, or password information; (5) a person seeking to receive compensation for advising, assisting, or consulting any individual with any veterans' benefits matter must not use a medical professional for a secondary medical exam with whom they have an employment relationship; and (6) enter into any agreement related to a veterans' benefits matter that does not comply with this statute. Requires a person seeking to receive compensation for preparing, presentation or prosecution of, or advising, consulting or assisting an individual with, a veterans’ benefits matter to memorial all terms of the agreement, before rendering services, in a written agreement signed by both parties and contains specified terms. Violations are a violation of the NC Unfair Trade Practices Act. Exempts attorneys licensed to practice in NC from the statute. Effective October 1, 2025.